Detroit Educational Television Foundation. Financial Report with Additional Information June 30, 2008

Transcription

1 Financial Report with Additional Information June 30, 2008

2 Contents Report Letter 1 Financial Statements Balance Sheet 2 Statement of Activities and Changes in Net Assets 3 Statement of Cash Flows 4 Notes to Financial Statements 5-12 Additional Information 13 Report Letter 14 Balance Sheet by Broadcast Entity 15 Statement of Activities and Changes in Net Assets by Broadcast Entity 16 Statement of Functional Expenses 17

3 Independent Auditor's Report To the Board of Directors Detroit Educational Television Foundation We have audited the accompanying balance sheet of Detroit Educational Television Foundation as of June 30, 2008 and 2007 and the related statements of activities and changes in net assets and cash flows for the years then ended. These financial statements are the responsibility of the Foundation's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Detroit Educational Television Foundation at June 30, 2008 and 2007 and the changes in its net assets and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America. September 26,

4 Balance Sheet June 30, 2008 June 30, 2007 Assets Current Assets Cash and cash equivalents $ 2,262,671 $ 2,622,604 Receivables: Trade - Less allowance for doubtful accounts of $7,819 in 2008 and $83,850 in ,205,370 1,320,002 Pledges receivable - Net (Note 2) 2,466,609 2,639,705 Investments 1,222,874 1,198,603 Inventory 460, ,127 Restricted cash - Bond payments (Note 4) 244,592 - Prepaid assets and other 293, ,798 Total current assets 8,156,149 8,467,839 Pledges Receivable - Long-term (Note 2) 2,907,634 4,090,916 Property and Equipment - Net (Note 3) 14,538,375 13,726,721 Other Assets 190, ,658 Total assets $ 25,792,179 $ 26,484,134 Liabilities and Net Assets Current Liabilities Accounts payable $ 1,210,376 $ 533,269 Current portion of long-term debt (Note 4) 225,000 1,380,000 Accrued liabilities and other (Note 9) 1,249,589 1,689,952 Total current liabilities 2,684,965 3,603,221 Long-term Debt - Net of current portion (Note 4) 7,145,000 7,370,000 Total liabilities 9,829,965 10,973,221 Net Assets Unrestricted 15,338,427 14,843,083 Temporarily restricted - Production funding, children's programming, and other 543, ,830 Permanently restricted - Endowment 80,000 - Total net assets 15,962,214 15,510,913 Total liabilities and net assets $ 25,792,179 $ 26,484,134 See Notes to Financial Statements. 2

5 Statement of Activities and Changes in Net Assets Year Ended June 30, 2008 June 30, 2007 Changes in Unrestricted Net Assets Revenue and support: Individual contributions $ 8,357,035 $ 8,187,422 Retail product sales 4,051,346 4,805,296 Productions of local and national programs 1,839,194 1,867,059 Corporate contributions 1,458,637 1,696,580 Corporation for Public Broadcasting grant 1,824,905 1,422,639 Foundation contributions 403,075 1,191,082 Special events 220, ,846 Facilities rental 2,003, ,971 Capital campaign contributions 1,456,145 2,269,991 Net realized and unrealized (losses) gains on investments (55,729) 173,569 Interest income - Unrestricted 38,237 50,867 Miscellaneous income 137,521 20,412 Total revenue and support 21,734,308 22,481,734 Net assets released from restrictions 391, ,132 Total revenue, support, and net assets released from restrictions 22,126,151 22,920,866 Expenses: Program services: Communications 1,171,313 1,107,743 Production 4,908,261 5,885,236 Engineering 3,376,393 3,169,442 Broadcast 4,692,347 4,801,386 Total program services 14,148,314 14,963,807 Support services: Administration and general 2,241,881 2,523,398 Fund-raising 5,240,612 5,234,133 Total expenses 21,630,807 22,721,338 Increase in Unrestricted Net Assets 495, ,528 Changes in Temporarily Restricted Net Assets Contributions 267, ,000 Net assets released from restrictions (391,843) (439,132) (Decrease) Increase in Temporarily Restricted Net Assets (124,043) 58,868 Increase in Permanently Restricted Net Assets - Contributions 80,000 - Increase in Net Assets 451, ,396 Net Assets - Beginning of year 15,510,913 15,252,517 Net Assets - End of year $ 15,962,214 $ 15,510,913 See Notes to Financial Statements. 3

6 Statement of Cash Flows Year Ended June 30, 2008 June 30, 2007 Cash Flows from Operating Activities Increase in net assets $ 451,301 $ 258,396 Adjustments to reconcile increase in net assets to net cash from operating activities: Depreciation and amortization 656, ,171 Gain on sale of property and equipment (780) - Loss (gain) on securities 55,729 (173,569) Changes in operating assets and liabilities that provided (used) cash: Accounts receivable 114, ,408 Inventory (62,310) 99,420 Pledges receivable 1,356,378 85,583 Prepaid assets and other (4,798) 20,577 Accounts payable, trade, and other 677,107 65,751 Accrued liabilities and other (440,363) (378,572) Net cash provided by operating activities 2,803,694 1,040,165 Cash Flows from Investing Activities Purchase of property and equipment (1,459,835) (305,210) Proceeds from disposition of property and equipment Purchases of investments (367,652) (240,721) Proceeds from sales and maturities of investments 287, ,721 Net cash used in investing activities (1,539,035) (305,210) Cash Flows from Financing Activities - Payments on debt (1,380,000) (1,620,000) Net Decrease in Cash and Cash Equivalents (115,341) (885,045) Cash and Cash Equivalents - Beginning of year 2,622,604 3,507,649 Cash and Cash Equivalents - End of year $ 2,507,263 $ 2,622,604 Supplemental Disclosure of Cash Flow Information - Cash paid for interest $ 234,583 $ 325,530 Cash and Cash Equivalents are Comprised of the Following Unrestricted $ 2,262,671 $ 2,622,604 Restricted 244,592 - Total $ 2,507,263 $ 2,622,604 See Notes to Financial Statements. 4

7 Notes to Financial Statements June 30, 2008 and 2007 Note 1 - Nature of Business and Significant Accounting Policies Nature of Organization - Detroit Educational Television Foundation (the "Foundation") is a not-for-profit corporation, which is exempt from federal income tax under Section 501(c)(3) of the United States Internal Revenue Code, classified as an organization that is not a private foundation, and incorporated under the name Detroit Educational Television Foundation. The Foundation receives the majority of its funding from corporate and individual contributions and retail sales of productions of artists featured during programming. The Foundation distinguishes among contributions received for each net asset category in accordance with donor-imposed restrictions. A description of the three categories is as follows: Unrestricted Net Assets - Unrestricted net assets are not subject to donor-imposed stipulations. Unrestricted net assets may be designated for specific purposes by action of the board or may otherwise be limited by contractual agreements with outside parties. Temporarily Restricted Net Assets - Temporarily restricted net assets are subject to donor-imposed stipulations that can be fulfilled by actions of the Foundation pursuant to those stipulations or that expire by passage of time. Temporarily restricted net assets total approximately $544,000 and $668,000 at June 30, 2008 and 2007, respectively. Changes in temporarily restricted net assets include contributions of $267,800 and $474,000 restricted for production funding at June 30, 2008 and 2007, respectively. Changes in temporarily restricted net assets also include $27,968 and $24,000 restricted for children's programming and other purposes at June 30, 2008 and 2007, respectively. Permanently Restricted Net Assets - Permanently restricted net assets are subject to donor-imposed stipulations that they may be maintained permanently by the Foundation. Changes in permanently restricted net assets include contributions of $80,000 for an endowment at June 30, Expenses are generally reported as decreases in unrestricted net assets. Expirations of donor-imposed stipulations that simultaneously increase one class of net assets and decrease another are reported as reclassifications between the applicable classes of net assets. Contribution revenue with donor-imposed restrictions that are met in the same year as received or earned is reported as unrestricted revenue. Contribution revenue with donor-imposed restrictions that are not met in the same year is reported as temporarily restricted revenue and is reclassified to unrestricted net assets when an expense is incurred that satisfies the donor-imposed restriction. 5

8 Notes to Financial Statements June 30, 2008 and 2007 Note 1 - Nature of Business and Significant Accounting Policies (Continued) The significant accounting policies are described below: Cash Equivalents - The Foundation considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Investments - The Foundation has investments in mutual funds at June 30, 2008 and Investments are recorded at fair value based on quoted market prices. Accounts Receivable - Accounts receivable consist of trade receivables and receivables from Koch Entertainment LLC (Koch) for sales of retail products that are companions to the Foundation's fund-raising programs. Trade receivables are stated at billed amounts. An allowance for doubtful accounts is established based on specific assessment of all billings that remain unpaid following normal payment periods. All amounts deemed to be uncollectible are charged against the allowance for doubtful accounts in the period the determination is made. At June 30, 2008 and 2007, gross trade accounts receivable were approximately $589,000 and $580,000, respectively. The Foundation entered into an agreement until January 2009 with Koch for retail distribution throughout the United States and Canada of its music and video products that are companions to its television fund-raising programs. The receivable for retail sales by Koch is for sales that have occurred before the end of the fiscal year for which the Foundation has not received the proceeds. The receivables are stated at net realizable value. An allowance for potential returned merchandise is established based on historical merchandise return experience. At June 30, 2008 and 2007, accounts receivable from Koch totaled approximately $624,000 and $824,000, respectively, net of an allowance for returned merchandise of $146,000 and $195,000, respectively. Pledges Receivable - The Foundation receives pledges of financial support from corporations, foundations, and individuals. Revenue is recognized when a pledge is made. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows. An allowance for uncollectible contributions is provided based on management's judgment of potential defaults. The determination includes such factors as prior collection history, type of contribution, and nature of fund-raising. Inventory - Inventory, consisting mainly of promotional items and merchandise held for resale by a third party, is stated at the lower of cost, computed on a first-in, first-out (FIFO) basis, or net realizable value. 6

9 Notes to Financial Statements June 30, 2008 and 2007 Note 1 - Nature of Business and Significant Accounting Policies (Continued) Restricted Cash - The Michigan Strategic Fund Variable Rate Demand Limited Obligation Revenue Bonds Series 2005 contains an escrow agreement. The restricted cash is the balance of the required monthly escrow payments as of June 30, The escrow agreement requires monthly payments equal to one-twelth of the next annual principal payment. The escrow account is treated as additional collateral for the bonds. Property and Equipment - Property and equipment are stated at original cost if purchased or at estimated fair value if donated. When assets are retired or otherwise disposed of, the related cost and depreciation are removed from the respective accounts, and any profit or loss is included in revenue. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Other Assets - Other assets consist of capitalized bond issue costs related to the Series 2005 debt. The costs are being amortized over the life of the bonds. Revenue - All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Revenue relating to retail sales is recognized when the sales occur. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. New Accounting Pronouncement - In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157 (SFAS 157), Fair Value Measurements. SFAS 157 defines fair value and expands disclosures about fair value measurements. SFAS 157 does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. The provisions of SFAS 157 are effective for the fiscal year beginning after November 15, The Foundation is currently evaluating the impact, if any, of the provisions of SFAS 157 on its financial statements. 7

10 Notes to Financial Statements June 30, 2008 and 2007 Note 2 - Pledges Receivable Pledges receivable represent amounts pledged from donors. Pledges receivable consist of the following as of June 30, 2008 and 2007: Pledges receivable $ 5,879,785 $ 7,460,333 Less unamortized discount (255,049) (461,724) Less allowance for uncollectible pledges (250,493) (267,988) Net pledges receivable $ 5,374,243 $ 6,730,621 Amounts due in: Less than one year $ 2,717,102 $ 2,907,693 One to five years 3,162,683 4,552,640 Gross payments on pledges receivable $ 5,879,785 $ 7,460,333 Note 3 - Property and Equipment The cost of property and equipment and the related accumulated depreciation at June 30, 2008 and 2007 are as follows: Land $ 2,746,173 $ 2,746,173 Land improvements 74,543 74,543 Buildings and building improvements 9,777,336 9,675,773 Broadcast and production equipment 9,200,335 8,538,445 Office equipment 1,322,214 1,276,313 Construction in progress 784, ,150 Total cost 23,905,344 22,467,397 Accumulated depreciation (9,366,969) (8,740,676) Net carrying amount $ 14,538,375 $ 13,726,721 Depreciation expense was $648,160 and $580,534 at June 30, 2008 and 2007, respectively. 8

11 Notes to Financial Statements June 30, 2008 and 2007 Note 4 - Long-term Debt Bonds payable consist of the following: Michigan Strategic Fund Variable Rate Demand Limited Obligation Revenue Bonds Series 2005, in the amount of $10,370,000, have an original maturity date of June 1, The bonds bear interest at a variable rate determined weekly (1.59 percent at June 30, 2008), not to exceed 18 percent or the maximum rate permitted by applicable law, at which time the bonds are remarketed. Annual principal payments range from $225,000 to $2,000,000 through Beginning in 2008, the bond agreement required the Foundation to make deposits into an escrow account as described in Note 1. At June 30, 2008, the balance of the escrow account was $244,592. The Foundation is also required to maintain a letter of credit, which would fund any draws for bonds which are unable to be remarketed, equal to the balance of the bonds plus 45 days' interest at a maximum rate of 10 percent, not to exceed $10,497,849. The letter of credit expires on July 16, The bonds are collateralized by the letter of credit, which is collateralized by substantially all of the assets of the Foundation. In addition, the Foundation is subject to meeting certain financial covenants. Minimum principal payments on the bonds payable to maturity as of June 30, 2008 are as follows: Years Ending June 30 Amount 2009 $ 225, , , , , and thereafter 6,165,000 Total $ 7,370,000 The fair value of variable rate bonds payable approximates the carrying amount because the current effective rates reflect market rates. The fair value of the letter of credit is not determinable due to the uncertainty of the timing of payment, if any. Interest expense for the years ended June 30, 2008 and 2007 was $216,249 and $319,672, respectively. Subsequent to year end, the Foundation entered into an interest rate swap agreement maturing July 2013 to effectively convert a portion of the variable rate bonds to a fixed rate. Under the agreement, the Foundation will receive interest at a variable rate of 68 percent of LIBOR and pay interest at a fixed rate of 2.81 percent. 9

12 Notes to Financial Statements June 30, 2008 and 2007 Note 5 - Line of Credit The Foundation has available an unsecured line of credit, payable upon demand, which allows the Foundation to borrow up to $500,000, with interest at the bank's prime rate less 0.75 percentage points, an effective rate of 4.25 percent at June 30, The line of credit expires December 31, There were no borrowings under this line of credit during the years ended June 30, 2008 and Note 6 - Leases The Foundation leases space for its analog television antenna under a noncancelable operating lease agreement through February 28, 2009 at a monthly rent of $8,500. In addition, the Foundation is required to pay applicable maintenance and insurance. The Foundation also leases space for a transmitting antenna and associated equipment to transmit its broadcasting signal in digital format. This is a noncancelable operating lease agreement through June 30, 2019 at variable future minimum monthly lease payments. Beginning in year four of the lease, payments increase based upon the U.S. Department of Commerce's National Consumer Price Index for all urban consumer U.S. city averages. The Foundation also leases other miscellaneous equipment with monthly payments ranging from $110 to $5,100 with various expiration dates through Future minimum payments under these leases with initial or remaining terms of one year or more are as follows: Years Ending June 30 Amount 2009 $ 349, , , , ,379 Thereafter 653,440 Total $ 1,629,361 Antenna rent expense was approximately $210,000 and $189,000 for the years ended June 30, 2008 and 2007, respectively. Note 7 - Pension Costs The Foundation has a defined contribution retirement plan covering substantially all fulltime employees. Annually, the Foundation contributes 10 percent of each participating employee's compensation to the retirement plan. 10

13 Notes to Financial Statements June 30, 2008 and 2007 Note 7 - Pension Costs (Continued) Certain employees also participate in a pension plan administered by the Directors Guild of America. The Foundation contributes 5.5 percent of each participating employee's compensation. The Foundation contributed approximately $513,000 and $512,000 to the two plans during 2008 and 2007, respectively. Note 8 - Conditional Promises to Give During the year ended June 30, 2005, the Foundation received a $2,500,000 conditional promise. Revenue was recognized as the conditions of the promise were met, including $1,000,000 for the year ended June 30, As of June 30, 2007, the Foundation has met all conditions of the promise to give and recognized and received the entire contribution. During the year ended June 30, 2006, the Foundation received a $1,000,000 conditional promise. Revenue was recognized as the conditions of the promise were met, including $166,000 and $100,000 for the years ended June 30, 2008 and 2007, respectively. As of June 30, 2008, the Foundation had met all conditions of the promise to give. At June 30, 2008, $366,000 was recorded as a pledge receivable. During the year ended June 30, 2008, the Foundation received a $1,250,000 conditional promise. No revenue was recognized or received during the year ended June 30, To satisfy the conditions of the promise, the Foundation is required to raise $20,750,000 in capital campaign contributions. As of June 30, 2008, the Foundation had raised approximately $18,000,000 toward this goal. Note 9 - Commitments The Foundation has entered into multiple agreements with artists in which the Foundation has rights to manufacture, market, and distribute the artists' products throughout the United States and Canada. The Foundation also is obligated to pay royalties to publishers as a requirement under the copyright act. The Foundation is required to pay such royalties based upon a percentage of proceeds derived from the sales of the products. At June 30, 2008 and 2007, the Foundation has accrued approximately $729,000 and $1,152,000, respectively, in royalties under these agreements. 11

14 Notes to Financial Statements June 30, 2008 and 2007 Note 10 - Conditional Asset Retirement Obligations The Foundation has an obligation related to the removal of asbestos within one building upon reconstruction, demolition, or abandonment by the Foundation. The Foundation has not recorded a liability related to the potential costs associated with the asbestos abatement, as the fair value of the liability cannot currently be reasonably estimated because the range of time over which the Foundation may settle the obligation is unknown and cannot be estimated. The Foundation currently has no plans or expectation of plans to undertake a major renovation that would require the removal of the asbestos or demolition of the builing. The Foundation will recognize a liability in the period when sufficient information is available to reasonably estimate the fair value of any such liability. Note 11 - Construction Contract Commitments At June 30, 2008, the Foundation entered into an agreement with a contractor and an engineering firm to perform the buildout of the master control room for a total estimated cost of $793,000. Through June 30, 2008, approximately $621,000 was paid related to the project. 12

15 Additional Information 13

16 To the Board of Directors Detroit Educational Television Foundation We have audited the financial statements of Detroit Educational Television Foundation as of June 30, 2008 and Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The balance sheet by broadcast entity, statement of activities and changes in net assets by broadcast entity, and statement of functional expenses are presented for the purpose of additional analysis and are not required parts of the basic financial statements. Such information has been subjected to the procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. September 26,

17 Balance Sheet by Broadcast Entity June 30, 2008 (with comparative totals for June 30, 2007) Assets Totals WTVS WRCJ Current Assets Cash and cash equivalents $ 1,955,362 $ 307,309 $ 2,262,671 $ 2,622,604 Receivables: Trade - Less allowance for doubtful accounts of $7,819 in 2008 and $83,850 in ,117,298 88,072 1,205,370 1,320,002 Pledges receivable - Net 2,390,228 76,381 2,466,609 2,639,705 Investments 1,222,874-1,222,874 1,198,603 Inventory 460, , ,127 Intercompany (1,192,548) 1,192, Restricted cash - Bond payments 244, ,592 - Prepaid assets and other 270,370 23, , ,798 Total current assets 6,468,613 1,687,536 8,156,149 8,467,839 Pledges Receivable - Long-term 2,907,634-2,907,634 4,090,916 Property and Equipment - Net 14,421, ,346 14,538,375 13,726,721 Other Assets 190, , ,658 Total assets $ 23,987,297 $ 1,804,882 $ 25,792,179 $ 26,484,134 Liabilities and Net Assets Current Liabilities Accounts payable $ 1,032,602 $ 177,774 $ 1,210,376 $ 533,269 Current portion of long-term debt 225, ,000 1,380,000 Accrued liabilities and other 1,216,821 32,768 1,249,589 1,689,952 Total current liabilities 2,474, ,542 2,684,965 3,603,221 Long-term Debt - Net of current portion 7,145,000-7,145,000 7,370,000 Total liabilities 9,619, ,542 9,829,965 10,973,221 Net Assets Unrestricted 13,744,087 1,594,340 15,338,427 14,843,083 Temporarily restricted - Production funding, children's programming, and other 543, , ,830 Permanently restricted - Endowment 80,000-80,000 - Total net assets 14,367,874 1,594,340 15,962,214 15,510,913 Total liabilities and net assets $ 23,987,297 $ 1,804,882 $ 25,792,179 $ 26,484,134 15

18 Statement of Activities and Changes in Net Assets by Broadcast Entity Years Ended June 30, 2008 (with comparative totals for June 30, 2007) Totals WTVS WRCJ Changes in Unrestricted Net Assets Revenue and support: Individual contributions $ 7,453,225 $ 903,810 $ 8,357,035 $ 8,187,422 Retail product sales 4,051,346-4,051,346 4,805,296 Productions of local and national programs 1,839,194-1,839,194 1,867,059 Corporate contributions 1,122, ,978 1,458,637 1,696,580 Corporation for Public Broadcasting grant 1,558, ,985 1,824,905 1,422,639 Foundation contributions 172, , ,075 1,191,082 Special events 220, , ,846 Facilities rental 2,003,524-2,003, ,971 Capital campaign contributions 1,456,145-1,456,145 2,269,991 Net realized and unrealized gains (losses) on investments (55,729) - (55,729) 173,569 Interest income - Unrestricted 28,818 9,419 38,237 50,867 Miscellaneous income 136, ,521 20,412 Total revenue and support 19,987,264 1,747,044 21,734,308 22,481,734 Net assets released from restrictions 391, , ,132 Total revenue, support, and net assets released from restrictions 20,379,107 1,747,044 22,126,151 22,920,866 Expenses: Program services: Communications 1,054, ,202 1,171,313 1,107,743 Production 4,890,688 17,573 4,908,261 5,885,236 Engineering 3,278,433 97,960 3,376,393 3,169,442 Broadcast 3,734, ,650 4,692,347 4,801,386 Total program service expenses 12,957,929 1,190,385 14,148,314 14,963,807 Support services: Administration and general 2,040, ,232 2,241,881 2,523,398 Fund-raising 4,841, ,605 5,240,612 5,234,133 Total expenses 19,839,585 1,791,222 21,630,807 22,721,338 Increase (Decrease) in Unrestricted Net Assets 539,522 (44,178) 495, ,528 Changes in Temporarily Restricted Net Assets Contributions 267, , ,000 Net assets released from restrictions (391,843) - (391,843) (439,132) (Decrease) Increase in Temporarily Restricted Net Assets (124,043) - (124,043) 58,868 Increase in Permanently Restricted Net Assets - Contributions 80,000-80,000 - Increase (Decrease) in Net Assets 495,479 (44,178) 451, ,396 Net Assets - Beginning of year 13,872,395 1,638,518 15,510,913 15,252,517 Net Assets - End of year $ 14,367,874 $ 1,594,340 $ 15,962,214 $ 15,510,913 16

19 Statement of Functional Expenses Year Ended June 30, 2008 (with comparative totals for year ended June 30, 2007) Program Services Support Services Total Expenses Broadcast Communications Engineering Production Total Administration Fund-raising Salaries $ 1,306,975 $ 391,038 $ 1,746,843 $ 728,558 $ 4,173,414 $ 980,400 $ 1,319,443 $ 6,473,257 $ 6,583,278 Employee benefits 281,465 82, , , , , ,289 1,297,725 1,375,475 Payroll taxes 106,522 33, ,341 47, ,235 73,167 98, , ,762 Total salaries and related expenses 1,694, ,574 2,228, ,153 5,331,252 1,244,400 1,708,432 8,284,084 8,475,515 Product production ,833,823 1,833, ,833,823 2,131,176 Royalties 124, , , ,769 1,565,695 Program acquisition 2,128, ,128, ,128,320 2,150,276 Program production , ,262-11, , ,051 Professional services 60,909 49,775 10,429 74, , , ,767 1,238, ,403 Donor support , , ,740 Direct mail , , ,501 Heat, power, and light 53,860 36, ,827 29, ,812 55,460 78, , ,611 Advertising and promotion - 184,979-11, , , ,204 Information technology 19,575 6,129 22,031 3,100 50,835 6, , , ,147 Outreach and events 2,074 10, , , , ,632 Maintenance and repairs 38,105 21,422 92,070 17, ,239 32,763 46, , ,839 Public Broadcasting Service fees 272, , , ,938 Tower rental , , , ,089 Telephone 36,028 15,611 47,383 14, ,809 25,171 34, , ,093 Interest and bond financing , , ,645 Program guide - 211, , , ,413 Legal 3,363 2,264 6,126 35,981 47,734 3,462 9,802 60,998 57,847 Credit card/bank fees , , , ,682 Equipment 17,411 11,858 88,503 9, ,426 17,929 27, , ,661 Security 53,991-61,793 18, , , ,374 Insurance 26,692 17,971 48,627 14, ,090 27,485 39, , ,143 Postage and shipping 3, ,878 88,677 96,737 5, , , ,142 Travel 22,667 4,427 4,049 39,878 71,021 24,335 32, ,066 90,291 Property tax ,221-31,221 34,173 Dues, books, and periodicals 24,286 1,701 1, ,683 35,811 1,021 64,515 55,228 Office supplies and printing 6,899 20,368 1,549 6,156 34,972 9,623 20,248 64,843 86,884 Audit ,850-66,850 66,895 Personnel development 1,298 1,667 1,341-4,306 27,105 1,294 32,705 34,907 Miscellaneous ,151 7,075 3,363 11,589 3,972 Depreciation and amortization 100,358 67, ,830 55, , , , , ,171 Total functional expenses $ 4,692,347 $ 1,171,313 $ 3,376,393 $ 4,908,261 $ 14,148,314 $ 2,241,881 $ 5,240,612 $ 21,630,807 $ 22,721,338 17